State Should Have Directly Attached Properties Of PFI Office-Bearers; Notice Was Unnecessary: Kerala High Court On Hartal Damages

The Kerala High Court on Wednesday observed that the State Government ought to have directly proceeded to attach the properties of the PFI and its office bearers, and bring the same to sale for realization of the amount of Rs 5.20 Crore towards the damage caused during the flash hartal in September 2022. 

The court was told by the State Attorney that the notice had been issued to the Secretary of PFI, Abdul Sathar, asking to show cause as to why the property need not be attached, since the court had directed that the recovery proceedings to be initiated by invoking the provisions of the Revenue Recovery Act.

The Division Bench comprising Justice A.K. Jayasankaran Nambiar and Justice Mohammed Nias C.P. observed that:

"Taking note of the erroneous appreciation by the State of the directions issued by us on 23.12.2022, we clarify that our direction to the State was to proceed against the properties of the additional 12th and 13th respondents, as also the properties of the office bearers of the organization concerned, after finding that they had not complied with our earlier direction to deposit the amount of 5.20 Crores. Under the said circumstances, a further notice asking the said persons to show cause as to why their properties should not be attached was wholly unnecessary". 

The State earlier also told about the steps are being taken and directions have been issued to the concerned authorities with respect to the prompt discharge of the recovery proceedings. 

The court went on to clarify in this context that:

"... those procedures under the said Act such as Sections 7 and 34 that are designed to protect the owners of the properties need not be invoked in the case of the additional 12th and 13th respondents, as well as the office bearers of the organization concerned since they are admittedly defaulters of the directions issued by us". 

The case has been posted for further consideration on January 24, by which time the State has been directed to report the attachment of properties that had already been identified as belonging to the additional respondents, as well as the office bearers of the organization.

The court has further directed the State to file the report in this regard by January 23, 2023, which shall also contain the District-wise details of the properties that have been attached. 

Case Title: Kerala Chamber of Commerce and Industry v. State of Kerala and Malayalavedi v. State of Kerala